ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release August 17, 2005 #05-58
E-mail: [email protected]

AMERICA’S COMMUNITY BANKERS HAILS MAGISTRATE’S DECISION TO RECOMMEND REQUIRING NCUA TO VALIDATE TEXAS CREDIT UNION’S CONVERSION TO MUTUAL SAVINGS BANKS CHARTER

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Statement by Diane Casey-Landry, president and CEO, America’s Community Bankers, on the federal magistrate’s decision today to recommend issuance of a preliminary injunction in the Texas credit union lawsuit against the National Credit Union Administration:

America’s Community Bankers applauds the federal magistrate’s decision to recommend to a federal district judge the issuance of a preliminary injunction requiring the National Credit Union Administration to validate the member vote of Community Credit Union, Plano, Texas, to convert to a mutual savings bank charter.

The magistrate found that the NCUA’s action in invalidating the vote was arbitrary and capricious, and contrary to law — arguments made in the amicus brief in support of Community filed by America’s Community Bankers, joined by the Independent Community Bankers of America and 33 state trade groups.

As we said in our brief, this is a case about charter choice. It is about the right of credit union members to choose the charter that will better serve the interests of members and of the local community. The NCUA violated its own regulations in disapproving the procedures under which Community Credit Union members overwhelmingly voted for conversion.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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